Revenue Budgeting in Funds Management

[Former Member]

Hi

I am trying to understand revenue budgeting in PSM-FM. With expenditure, you create commitment items with 30 and 3 and post budget and monitor expenditure. AVC ensures that the budget is not exceeded depending on tolerance profile settings etc. How does this work for revenues? You wouldn't want to put a "limit" on revenue and have AVC checking if you have "exceeded" your revenue. Do we post a budget to a revenue commitment item with 30 and 2 and check the revenue budget or is it that when we speak of revenue budgeting in FM, we are referring to RIB revenues increasing the budget?

Please clarify.

Thanks.

[iklovski · Accepted solution]

Hi,

Revenue budgeting could be used for reporting purposes. Indeed, stopping the document just because it exceeds budget for revenue, won't be reasonable (though, you might see a project where this demand is essential). In order to avoid this, you define a derivation rule for tolerance profile in AVC (for example, based on POTYP - commitment item category), which would derive a relevant profile.

Regards,

Eli

P.S. RIB is whole separate process and has no direct link to revenue budgeting

[Former Member]

Thanks Eli.